"We do have these headwinds in the second half of the year from a likely bit of tightening coming through in the upcoming federal budget, together with some slowdown in China's growth," he said.

Mr Haslem says the recent inflation reading means the RBA can be relaxed about its next move.

"So I think a combination of maybe flagging a little bit more of a downward revision on inflation plus a still high Australian dollar will mean the RBA comes off sounding reasonably relaxed and less concerned about the recent strength in the Australian economy," he added.

Mr Haslem expects the RBA to raise interest rates early next year, but this could be brought forward if the economy keeps improving.

"I think if the fiscal position wasn't likely to be getting a little bit tighter over the course of the year, and China surprised on the more positive side, I think there would be some chance that our first quarter 2015 rate hikes could get dragged into the latter part of this year, particularly if we continued to see strong data coming through in the consumer, retail and housing sectors," he concluded.

The Reserve Bank decision for May will be released at 2:30pm (AEST) today, with full coverage on ABC News Online.